Acquires Crew Training International, a
leading provider of crew training to the US Department of
Defense
WINNIPEG, MB, Dec. 16, 2021 /CNW/ - Exchange Income Corporation
(TSX: EIF) ("EIC" or the "Corporation") a diversified,
acquisition-oriented company focused on opportunities in the
aviation, aerospace and manufacturing sectors, announced today it
has acquired Crew Training International, Inc. ("CTI"),
headquartered in Memphis, TN. The
purchase price of US$45 million was
funded by the issuance of US$7
million of EIC common shares to the vendor and cash in the
amount of US$38 million that was
available from the Corporation's credit facility.
CTI has 30 years of experience developing and delivering
training solutions for the US government and commercial
applications. CTI's primary customer is the US Department of
Defense, including the US Air Force, the US Navy, and the US Marine
Corps. CTI delivers training solutions for these customers across
an array of aviation platforms and has in-depth experience in
training pilots and sensor operators on both manned and unmanned
aircraft. These services are delivered by CTI's 500 employees on
military bases throughout the US.
Mike Pyle, CEO of EIC, commented,
"CTI is a market leader with superior management and a
well-developed company culture making it an ideal company to join
EIC. There is high demand for aviation training and we are eager to
grow in this field. CTI's leading capabilities, reputation, and
presence in the US market, which have been developed over the last
three decades, make this a very exciting acquisition. This
transaction is accretive for our shareholders, and I am very
pleased Alan and his executive team will continue leading this
terrific business."
Mr. Pyle added, "Aviation training and providing solutions to
governments are services EIC understands well. The addition of CTI,
expands on this expertise, adding new customers, capabilities, and
platforms, including unmanned expertise. In addition, this
acquisition will provide the foundation for EIC to expand its ISR
operations to the US market. This is the first step for EIC to be
able to leverage our leading ISR capabilities and expand in the
future to serve the US Department of Defense."
Alan Mullen, CTI's Founder and
CEO, stated, "I'm very proud of what we have created at CTI. Our
people are exceptional, and we pride ourselves on delivering for
our customers. It's important to do what you say and to keep your
word. I started this business with those ideals at the forefront
and it was critical for me to find a partner who would preserve
this commitment, as well as our culture and our reputation.
EIC's model is the right fit for our company, our employees
and our customers. CTI can continue to deliver on our word and we
are excited to work with the broader EIC aerospace and government
contracting group to add additional services and value for our
customers."
Adam Terwin, Chief Corporate
Development Officer of EIC said, "Government outsourcing of
military training has increased throughout the world, driven by
growing labor shortages, creating long-term robust demand for CTI's
service. CTI has developed great knowledge and experience in this
field, specifically in military aviation. Their experience in
training solutions, know how in US government contracting, and
their robust business development capabilities have positioned them
to expand their training solutions in aviation and into other
areas. This includes recent contract wins with additional agencies
in the US Department of Defense and in ancillary areas to aviation
such as cyber training. We are excited Alan and his team will be
staying on to lead CTI in this next phase of their growth."
Mike Pyle concluded by saying,
"The pandemic has challenged our business model, and I am
exceptionally pleased with how we have met those challenges.
2021 was a busy year of organic and inorganic growth for EIC. This
acquisition is the second acquisition since we reported our third
quarter results. The other acquisition was Ryko Telecommunications
Inc., a strategic addition to WesTower's wireline construction and
maintenance services offering in Western
Canada, which was completed on December 1, 2021 for $14
million. This makes five acquisitions in 2021, which
when combined with significant organic investment, positions us
well for continued growth in 2022 and beyond."
About Exchange Income Corporation
Exchange Income Corporation is a diversified
acquisition-oriented company, focused in two sectors: aerospace
& aviation services and equipment, and manufacturing. The
Corporation uses a disciplined acquisition strategy to identify
already profitable, well-established companies that have strong
management teams, generate steady cash flow, operate in niche
markets and have opportunities for organic growth. For more
information on the Corporation, please visit
www.ExchangeIncomeCorp.ca. Additional information relating to the
Corporation, including all public filings, is available on SEDAR
(www.sedar.com).
About Crew Training International
Founded in 1992, Crew Training International develops advanced
training solutions for the US Department of Defense, government,
and commercial training programs. The company specializes in pilot
and sensor operator crew training on both manned and unmanned
military aircraft for the US Department of Defense. Headquartered
in Memphis, TN, the services are
primarily delivered on military bases throughout the United States.
Caution Concerning Forward-looking Statements
The statements contained in this news release that are
forward-looking are based on current expectations and are subject
to a number of uncertainties and risks, and actual results may
differ materially. These uncertainties and risks include, but are
not limited to, COVID-19 and pandemic related risks, the dependence
of Exchange Income Corporation on the operations and assets
currently owned by it, the degree to which its subsidiaries are
leveraged, the fact that cash distributions are not guaranteed and
will fluctuate with the Corporation's financial performance,
dilution, restrictions on potential future growth, the risk of
shareholder liability, competitive pressures (including price
competition), changes in market activity, the cyclicality of the
industries, seasonality of the businesses, poor weather conditions,
and foreign currency fluctuations, legal proceedings, commodity
prices and raw material exposure, dependence on key personnel, and
environmental, health and safety and other regulatory requirements.
Except as required by Canadian Securities Law, the Corporation does
not undertake to update any forward-looking statements; such
statements speak only as of the date made. Further information
about these and other risks and uncertainties can be found in the
disclosure documents filed by Exchange Income Corporation with the
securities regulatory authorities, available at
www.sedar.com.
SOURCE Exchange Income Corporation
